Saudi Arabia Withholding Tax Calculator 2021
Calculate tax on payments to non-residents (5%-20%)
Introduction
🎯 What
Saudi Arabia Withholding Tax Calculator 2021 calculates withholding tax (WHT) on payments made to non-residents for services, royalties, interest, and other taxable income sources.
👥 Who
Saudi companies paying non-residents, Foreign service providers, Finance & accounting departments, Tax consultants and auditors.
💡 Why
To estimate correct withholding tax before making cross-border payments and ensure compliance with ZATCA regulations.
💰 Payment Details
👤 Recipient Information
Enter 0 if no treaty applies, or treaty rate if applicable
⚙️ VAT Adjustment (Optional)
VAT must be excluded from taxable base
📊 Tax Summary
Enter values to calculate tax.
Detailed Calculation Steps
Withholding Tax Rates 2021
📋 Standard WHT Rates
⚠️ Note
Rates may be reduced under applicable Double Taxation Treaties (DTT).
Calculator provides standard domestic rates only. Manual treaty rate override available.
Taxable Payments
✅ Subject to Withholding Tax
- Payments to non-residents
- Services performed inside or related to Saudi Arabia
- Royalties for IP used in KSA
- Interest from Saudi sources
❌ Not Subject to Withholding Tax
- Payments to Saudi residents
- Salary payments to employees
- VAT component on invoices
Allowances & Deductions
✅ Allowances
Tax treaties may reduce WHT rates (manual adjustment option available in calculator)
⚙️ Deductions
No expense deductions allowed
WHT calculated on gross payment amount
🔧 Adjustment
Optional treaty rate override input available
Required User Inputs
📋 Mandatory Inputs
- Type of Payment (Dropdown)
- Gross Payment Amount (SAR)
- Recipient Residency Status (Resident / Non-Resident)
⚙️ Optional Inputs
- Treaty Reduced Rate (%)
- VAT Included Toggle (Yes / No)
- VAT Amount (if applicable)
Calculation Logic
STEP 1: CHECK TAX APPLICABILITY
IF Recipient = Resident → WHT = 0
IF Recipient = Non-Resident → Apply WHT
STEP 2: DETERMINE WHT RATE
- Fetch standard rate based on payment type
- IF Treaty Rate Provided → Override standard rate
STEP 3: ADJUST TAXABLE BASE
IF VAT Included = YES:
Taxable Amount = Gross Amount − VAT
ELSE:
Taxable Amount = Gross Amount
STEP 4: CALCULATE WITHHOLDING TAX
Withholding Tax = Taxable Amount × WHT Rate
STEP 5: NET PAYMENT
Net Payment to Non-Resident = Gross Amount − Withholding Tax
Calculator Output
- ✔ Payment Type
- ✔ Gross Payment Amount
- ✔ Applicable WHT Rate
- ✔ Withholding Tax Amount
- ✔ Net Amount Payable
- ✔ Residency Status Applied
Calculation Examples
Example 1: Management Fee
Payment Type: Management Fee
Gross Amount: 100,000 SAR
WHT Rate: 20%
Withholding Tax = 100,000 × 20% = 20,000 SAR
Net Payment = 100,000 − 20,000 = 80,000 SAR
Example 2: Technical Service with Treaty
Payment Type: Technical Service
Gross Amount: 50,000 SAR
Standard Rate: 5%
Treaty Rate: 5% (applied)
Withholding Tax = 50,000 × 5% = 2,500 SAR
Net Payment = 50,000 − 2,500 = 47,500 SAR
Example 3: Royalty Payment
Payment Type: Royalty
Gross Amount: 75,000 SAR
WHT Rate: 15%
Withholding Tax = 75,000 × 15% = 11,250 SAR
Net Payment = 75,000 − 11,250 = 63,750 SAR
Frequently Asked Questions
Q: Is withholding tax applicable to residents?
A: No, WHT applies only to non-residents. Payments to Saudi residents are subject to 0% WHT.
Q: Can treaty rates be applied?
A: Yes, if a valid tax treaty exists between Saudi Arabia and the recipient's country. Proper documentation is required.
Q: Is VAT included in WHT calculation?
A: No, VAT must be excluded from the taxable base. WHT is calculated on the net amount excluding VAT.
Q: Who pays the withholding tax?
A: The Saudi payer deducts the WHT from the gross payment and remits it to ZATCA on behalf of the non-resident recipient.
Q: What are the most common withholding tax rates in 2021?
A: Management fees (20%), Royalties (15%), Technical services, interest, dividends (5%).
Q: When should WHT be paid to ZATCA?
A: WHT must be withheld at the time of payment and remitted to ZATCA within 10 days of the following month.
Q: Are there penalties for late WHT remittance?
A: Yes, penalties and interest may apply for late payment or non-compliance with WHT regulations.
Q: Can WHT be recovered by the recipient?
A: The recipient may be able to claim a credit for WHT in their home country, depending on local tax laws and treaties.
Q: What documentation is required for treaty relief?
A: Typically, a certificate of residence from the recipient's country and other documentation proving treaty eligibility.
Q: Is this calculator suitable for official filing?
A: No, this is for estimation only. Consult ZATCA guidelines or a tax professional for official filings.
⚠️ Disclaimer
This Saudi Arabia Withholding Tax Calculator 2021 is for informational purposes only and intended for Google AdSense informational content.
Rates are based on ZATCA withholding tax regulations applicable in 2021. The calculator provides estimates based on user inputs and may not reflect all specific circumstances, tax treaties, or special provisions that may apply to your situation.
Actual tax liability may vary due to treaties, regulatory updates, or specific ZATCA rulings. Double taxation treaties may reduce or eliminate withholding tax, but proper documentation and approval are required.
ANTIGRAVITY does not provide legal, tax, or financial advice. Users are solely responsible for verifying the accuracy of all calculations and ensuring compliance with Saudi tax laws and ZATCA regulations.
For official WHT filing, treaty applications, or specific tax situations, please consult a qualified tax professional or refer to ZATCA's official guidelines at zatca.gov.sa.